For graphics work, you really need to pay attention to Levels. When you export from Photoshop, your images will usually be full range (0-255), or in Vegas terms, Computer RGB. When you render from Vegas you must apply a Computer RGB to Studio RGB filter. The easiest way if all you have is graphic images is to apply it on the video bus using the Levels Fx (computer RGB to studio RGB preset). You will notice two things in your second rendered image. First your blacks are very dark and your whites are over blown. Once you apply the filter, try rendering using Sony AVC at say 10 Mbps and then upload to YT. Bear in mind, YT video will always be a lesser quality. Good luck.

Thanks for the reply Wayne. I had forgot to mention I had actually applied that filter rgb to studio on the first example. Though, i assumed just that would do the trick. I had messed with it a bit with the gamma and got almost the same result as I had in photoshop.

The quality in youtube is much better now at 1080p, i just have to maybe do some smoothing maybe for some edges.

As described in countless posts on levels, YouTube and most other video players will stretch levels from sRGB to cRGB. So if you place your blacks at 0 in photoshop, the YouTube player will stretch those levels darker then 0. If you place your blacks at 16, those levels will get stretched to 0. The same goes for the top end.

You can see you levels in the waveform monitor.

These issues have to do with Video not really being a computer standard application. Video was once its own system before computers, and computers do their best to represent it in cRGB. Its up to the operator to understand these issues.